For the purpose of this Act, the term "foreigner" means an individual, juristic person, or organization falling under any of the following subparagraphs:

An individual who does not have the nationality of the Republic of Korea; and

A juristic person or organization which falls under any of the following items:

(a) A juristic person or organization which is established in accordance with foreign Acts and subordinate statutes;

(b) A juristic person or organization where not less than half of its employees or members fall under subparagraph 1;

(c) A juristic person or organization where not less than half of the officers such as employees executing its affairs or directors fall under subparagraph 1; and

(d) A juristic person or organization where an individual falling under subparagraph 1 or a juristic person or organization falling under item (a) has not less than half of its capital or voting rights. In this case, when calculating the capital or the number of voting rights, the bearer stocks of a stock company shall be considered to belong to an individual falling under subparagraph 1 or a juristic person or organization falling under item (a).

An individual, juristic person, organization, or government of a foreign country which prohibits or limits the national of the Republic of Korea, a juristic person or organization established in accordance with the Acts and subordinate statutes of the Republic of Korea, or the Government of the Republic of Korea, from acquiring or transferring the land within its own territory, may be prohibited or limited from acquiring or transferring the land within the territory of the Republic of Korea by the Minister of Construction and Transportation under the conditions as prescribed by the Presidential Decree.

(1)Where a foreigner, a foreign government, or an international organization prescribed by the Presidential Decree (hereinafter referred to as a "foreigner") concludes a contract for land acquisition within the territory of the Republic of Korea (hereinafter referred to as a "land acquisition contract"), it shall report the conclusion of the contract to the head of Si/Gun/Gu (referring to an autonomous Gu; hereinafter the same shall apply) within 60 days after it, under the conditions as prescribed by the Presidential Decree.

(2) Notwithstanding the provisions of paragraph (1), in case of acquiring the land located in the districts or areas falling under any of the following subparagraphs, a foreigner shall obtain permission from the head of Si/Gun/Gu before the conclusion of the contract, under the conditions as prescribed by the Presidential Decree:[1]

Military installation protection areas under subparagraph 2 of Article 2 of the Protection of Military Installations Act, naval bases under Article 3 of the Naval Bases Act, base protection areas under subparagraph 9 of Article 2 of the Military Air Bases Act, or such other areas as may be especially necessary to limit the foreigner's land acquisition for the purpose of national defense as prescribed by the Presidential Decree;

Designated cultural properties, and protectors or reservations for them under Article 2 (2) of the Protection of Cultural Properties Act;

Ecology and scenery conservation zones under subparagraph 12 of Article 2 of the Natural Environment Conservation Act; and

Special protection areas for wild animals and plants in accordance with Article 27 of the Protection of Wild Fauna and Flora Act.

(3)As long as foreigner's land acquisition in districts and areas falling under any subparagraph of paragraph (2) does not cause any inconveniences in the related districts and areas, the head of Si/Gun/Gu shall permit foreigner's land acquisition in accordance with paragraph (2).

(4) No land acquisition contract concluded in violation of paragraph (2) shall take effect.

Article 5 (Report of Land Acquisition Caused by Reasons other than Contract)[edit]

Where a foreigner acquires land within the territory of the Republic of Korea by means of inheritance, auction, or any cause other than contracts prescribed by the Presidential Decree, he shall report to the head of Si/Gun/Gu within 6 months after his land acquisition under the conditions as prescribed by the Presidential Decree.

Where a national of the Republic of Korea, or a juristic person or organization established in accordance with the Acts and subordinate statutes of the Republic of Korea, which has land within the territory of the Republic of Korea, changes its nationality and then desires to keep the land, it shall report to the head of Si/Gun/Gu within 6 months after the change of the nationality under the conditions as prescribed by the Presidential Decree.

Where a foreigner concludes a land acquisition contract without obtaining any permission under Article 4 (2) or with obtaining any permission by unjust means, he shall be sentenced to imprisonment for not more than two years or to a fine not exceeding twenty million won.

Where a representative of a juristic person, or an agent, employee, or other personnels of a juristic person or individual commits an offense provided for in Article 7 in connection with affairs of the juristic person or individual, not only the illegal performer but also its juristic person or individual shall be sentenced to the fine provided for in the same Article.

(1)A person who fails to report land acquisition under Article 4 (1) or makes a false report, shall be sentenced to a fine for negligence not exceeding three million won.

(2)A person who falls under any of the following subparagraphs shall be sentenced to a fine for negligence not exceeding one million won.

A person who fails to report land acquisition under Article 5 or makes a false report; or

A person who fails to report the continuous holding of land under Article 6 or makes a false report.

(3)A fine for negligence provided for in paragraphs (1) and (2) shall be imposed and collected by the head of Si/Gun/Gu under the conditions as prescribed by the Presidential Decree.

(4)A person who is dissatisfied with the disposition of a fine for negligence under paragraph (3) may raise an objection against it to the head of Si/Gun/Gu within thirty days after receiving its notification.

(5)Where a person who is subject to the disposition of a fine for negligence under paragraph (3) raises an objection against it under paragraph (4), the head of Si/Gun/Gu shall forthwith notify a competent court, and the court shall, upon the receipt of such notification, bring the case to a trial of a fine for negligence in accordance with the Non-Contentious Case Litigation Procedure Act.

(6)Where no objection is raised and no fine for negligence is paid within a definite period under paragraph (4), the fine for negligence shall be collected according to the example of dispositions on delinquency of local tax.

(1)Where any permission or report on the acquisition or continuous holding of land was granted or made under the previous provisions at the time this Act enters into force, it shall be considered to have been granted or made in accordance with the amended provisions of Article 4 (1) and (2), 5, or 6.

(2)Where a foreigner who failed to obtain permission or make a report on the acquisition or continuous holding of land under the previous provisions at the time this Act enters into force, obtains permission or makes a report in accordance with the amended provisions of Article 4 (1) and (2), 5, or 6 within one year after the date of its enforcement, he shall be considered to have obtained permission or made a report in accordance with the previous provisions.

Article 3 (Transitional Measures concerning Penal Provisions)

The application of penal provisions against an illegal act before the enforcement of this Act shall be made in accordance with the previous provisions: Provided, That the same shall not apply to the permission obtained or report made in accordance with the amended provisions of Article 2 (2) of the Addenda within one year after this Act enters into force.